Chicago, IL – ABN AMRO Clearing Chicago LLC has agreed to settle charges brought by the Commodity Futures Trading Commission (CFTC) for failing to properly maintain required trading records and supervise its employees, according to an order issued Friday. The CFTC alleges these failures occurred between January 24, 2014, and August 28, 2015.
The investigation revealed ABN AMRO did not maintain complete electronic audit trail information for 65 clients trading derivatives during the specified period. Critically, the firm lacked a system to verify the accuracy and completeness of its data collection and preservation processes. While a recordkeeping system was in place, it didn’t confirm that the audit trail data was being accurately preserved.
The CFTC’s Division of Enforcement discovered the issues when it requested audit trail data for a specific ABN client on March 31, 2016. The data produced by ABN contained significant gaps and missing transactions. The firm reportedly was unaware of these deficiencies until notified by the CFTC.
Following notification, ABN AMRO reportedly took substantial steps to repair and reconstruct the missing data, and ultimately reconstructed “substantially all” of the affected records. The CFTC acknowledged the firm’s efforts in addressing the issues.
The order details no financial penalties, but outlines the requirement for ABN AMRO to adhere to CFTC regulations moving forward. The CME Group provided cooperation and assistance during the investigation. Staff members from the CFTC’s Division of Enforcement – Raagnee Beri, Kim Bruno, Michelle Bougas, Diana Dietrich, Kathleen Banar, and Rick Glaser – were responsible for the action.
Source: CFTC.gov
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